(PURSUANT TO REGULATION 34(2) OF THE LISTING REGULATIONS)
DISCLAIMER / CAUTIONARY STATEMENT
Statement in this Report, which describe the companys plans, projections, estimates, expectations or predictions, are based on certain assumptions and expectations of future events which may or may not happen as expected. Therefore, actual results could differ materially from those expressed/ implied and the company cannot guarantee that these will be realized. Importantfactorthatcould make a difference to the companys operations includeraw material availability and prices, cyclical demand and pricing in the companys principal markets, change in the government regulations, tax regime, politico-economic conditions within India and the countries in which the company conducts business and other incidentalfactors.
INDUSTRY STRUCTURE AND DEVELOPMENT
Jasch Gauging Technologies Ltd manufactures Industrial Gauges & Equipments. Industrial Gauges & Equipments are used for online measurement of thickness, grammage, moisture & ash contents in paper making industry, on-line measurement of thickness & coating weight in plastics, steel, sheet rolling, galvanizing, aluminum foil & nonferrous metal rolling industry.
The Companys has started its business operations w.e.f 01-10-2023 as pursuant to scheme of demerger, effective after business hours of 30-09-2023, Company has received Industrial Gauges & Equipments from Jasch Industries Ltd ongoing concern basis. The Companys financial performance is influenced by approvals received from various government regulators.
The Financial Year 2023-24 was marked by an uncertain and fragile global economic environment. The Indian economy has shown resilience and emerged as the fastest-growing major economy. Government of India continues to strengthen key sectors of the Indian economy with capex and policy initiatives to drive long-term sustainable growth. The Union Budgetfor FY 2023-24 highlighted key focus areas primarily economic reforms aimed atimproving Indias manufacturing competitiveness, safeguarding supply chains and reducing systemic financial risks. Corporate & Infrastructure development continues to be a focus area for the Government of India, with multiple projects being executed under various initiatives. Structural reforms and measures taken improved the ease of doing business to some extent.
OPPORTUNITIES AND THREATS
The fortune of Industrial Gauges & Equipments is linked with the rise or fall in domestic and international economies and also on investment by user-industries in capital goods or in quality control equipment. It may get adversely affected whenever there is slowdown in domesticand international economies.
PRODUCT & PERFORMANCE
The Company has only manufactured Industrial Gauges & Equipments. For performance of the Company, kindly refer to Board Report.
OUTLOOK
The Company will focus on sustaining its growth momentum in the current year and will focus on maximizing the output from the unit. The Company also focuses on further increasing the standardization of components used in Industrial Gauges, which benefits the customer and the Company. The Company will also work on aligning operations to the digital platform to transform its operations into Smart Operations.
RISKS AND CONCERNS
Riskis an integral part of any business and the Company is no exception. A brief evaluation ofbusiness risk, as perceived by themanagement, is as under:
1 . Business Risk
A. User Industry concentration
Industrial Gauges & Equipments are classified as capital goods. These are generally bought by paper, plastic, steel and galvanizing industry. Revenues and consequent profits from industrial gauges, depend on growth of these industries. In case of a downward trend in the economy, investment in capitalgoods is the last priority of an enterprise.
B. Commodity Risk
In Industrial Gauges & Equipments, any increase in price of electronics items and steel has very little effect on the cost of production of gauges. Thegauges being technology-based capital goods, the Company is able to pass on the entire burden to the buyers and there is no commodity risk whatsoever. There are no long-term contracts in this segment a Iso.
C. Customer & Geographical concentration
Excessive exposure to a few large clients has the potential to adversely affect the sales and profitability in view of failure/shift of clients to othermanufactures. Fortunately, the companys customers are fairly spread out across the country andfurthereffortsare underwayto enlarge presence in global markets.
The Company has developed the in - house technology for the design and manufacture of Industrial Gauges system which isbeingfurther upgraded continuously. Hence, there is nothreat of obsolescence in the near future.
2. Financial Risk
A. Currency Fluctuation Risk
The Industrial Gauges System has large export potential, which provides some cushion by way of natural hedge on foreign exchange transactions. The companys foreign currencytransactions are on current accountbasis and there are no deferred liabilities in terms of foreign exchange except amount due in respect of raw material imported on deferred payment basis after 31st March 2024and to be paid later.
B. Interest and Leverage Risk
Increase in bank interest rate impacts the profitability of the company because this increase cannot always be passed on to customer. The management tries to contain interest cost by efficient management of inventory and working capital resources.
C. Force Majeure & Act of God
Unforeseen natural or man-made calamities may have a significant financial bearingonthe operation of the Company.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY Internal Control Systems
In order to safeguard the assets and their usage, maintenance of proper accounting record and provision of reliable data for taking business decisions, the management has put in place various internal control system. Broadly, these systems are entity level controls, financial controls and operational controls. The internal controls provided by this system are authority and organization matrix, standard operating procedures, risk managementpractices, compliance framework within the organization, ethics and fraud risk management, management information system, selfassessment of controlpoint, businesscontinuity and disaster recovery planning, budgeting system, etc.
Adequacy and Key elements of the Internal Control Systems
The Audit Committee of the company, all of whose members are Independent Directors, has reviewed the aforesaid internal control systems and found the same to be adequate and commensurate with the nature, size, complexity and
the business processes followed by the Company.
The Company has appointed a firm of Chartered Accountants as internal auditors to ensure compliance and effectiveness of the internal control systems prevalent in the company .The Audit Committee reviews the Internal Audit Reports. Additionally, the Audit Committee approves all the audit plans and reports for any issues raised by the internal and statutory auditors. Regular reports on business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for the perusal of the senior management for appropriate action as required.
Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance and are supplement by periodic risk assessments, inspectionsand safety conducted bythe Company.
DISCUSSION ON FINANCIAL AND OPERATIONAL PERFORMANCE: Please refer to first para graph of Directors Report.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT & NUMBER OF PEOPLE EMPLOYED
The Company treats its human resources as one of its most important assets. The Company continuously invests in attraction, retention and development of talent on an ongoing basis. The welfare activities of the Company specifically dedicated to its employees, include free emergency medical care, subsidized group health insurance, subsidized canteen facilities and need-based soft loans. To enrich the ski Us of employees, the Company conductsfocused training programs. The Company did nothave anylaborproblem duringtheyearunder report. Relationswith workerand staffwere cordial. There were no material developments in human resources/industrial relations front. The number of persons on rolls of the Company as on 31-03-2024 were 96.
FINANCIAL RATIOS
As required under Regulation 34(3) of Listing Regulations read with para B.1 of Schedule V thereof, changes in financial ratios in the financialyear 2023-24, as compared with those of the immediatelyprecedingfinancialyear are given in Note 36(14) to Standalone Financial Statements and the same may kindly be read as a part of this Report.
| By order of the Board of Directors | |
| For Jasch Gauging Technologies Limited | |
| Place: Sonipat | Jai Kishan Garg |
| Date: 30th May 2024 | Chairman |
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